Naveen Jindal-owned Jindal Steel and Power has accepted a binding offer to sell its entire stake in its Oman asset Jindal Shadeed Iron and Steel Co LLC (JSIS Oman) to promoter company Templar Investments Ltd. JSIS Oman was held through JSPL’s subsidiary Jindal Steel & Power (Mauritius) Ltd.
The enterprise value of the deal is over $1 billion, the company said in an exchange filing. The divestment is in line with JSPL’s vision and commitment to continuously bring down its debt and deleverage its balance sheet, the company said.
The transaction is subject to approval from shareholders of JSPL and lenders of JSIS Oman among others. JSPL expects the transaction to close in approximately a month. JSIS Oman, based in the port city of Sohar over 120 hectares, has a direct reduced iron plant, a steel melt shop, and a rolling mill and primarily produces steel billets and rebars.
In a press release, VR Sharma, MD, JSPL said, “This sale is in line with our vision to reduce debt and create a much healthier balance sheet for our investors and stakeholders. We firmly believe in the India growth story.” Templar Investments Limited Templar Investments Limited, Mauritius is an investment company and part of the Promoter Group of JSPL.
Alpen Capital, a Middle East-based investment bank, was appointed which ran a sale process while CMS Cameron McKenna Nabarro Olswang LLP, Oman and Cyril Amarchand Mangaldas, India were the legal advisors for the transaction.
Mint reported in December 2016 that JSPL was looking to sell a significant stake in its Oman unit to meet debt repayment obligations, said two people aware of the development.
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